Caspian Sunrise plc BNG operational update (7307S)
March 13 2019 - 5:30AM
UK Regulatory
TIDMCASP
RNS Number : 7307S
Caspian Sunrise plc
13 March 2019
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG operational update
The Board of Caspian Sunrise are pleased to update shareholders
with developments at its flagship BNG Contract Area.
Deep Wells
A5
The well has now been cleared to a depth of 4,238 meters, some
147 meters above the top of the previously perforated and tested
interval; 4385-4395m.
It is possible that previous attempts to clear the well have
resulted in damage to the tubing and casing. Our intention is now
to clean out the remaining 147 meters before evaluating the
condition of existing tubing and casing replacing /repairing as
appropriate prior to attempting to flow and test the well.
Barring additional difficulties and provided that the existing
tubing and casing are found to be in good condition, our objective
is to commence preparations for the much-awaited long-term flow
test before the end of March.
801
Since our last update annular pressure has stabilised at
approximately 600 ATM with tubing pressure currently at
approximately 380 ATM's and continuing to rise. International
consultants have been engaged to assist us in our plan to stimulate
the well by hydraulic pressure injection before initiating a full
flow test.
A6
As previously announced work on Well A6 is temporarily suspended
pending the outcomes at Deep Wells A5 and 801. We are using this
time to have international consultants with deep and high pressure
well experience to review our workover program.
A8
Progress remains encouraging at our latest deep well, A8, which
was spudded on November 2018 with a target Total Depth of 5,300
meters.
We have successfully drilled to a depth of approximately 3,900
meters reaching the Permian aged Kungurian salt section. The next
planned casing point is at the expected base of salt and enter the
Artinskian (shale) at a depth of approximately 4,400 meters.
We have also extended the contract with Sinopec, who are now
engaged to drill the well to the full planned Total Depth.
Shallow wells
Production from our shallow wells for February 2019, was in
aggregate 42,913 barrels or 1,533 bopd, with oil sold at an average
price of $20.50 per barrel.
Compared to January 2019, average daily production was 54 bopd
higher while total monthly oil production was down 2,928 barrels
reflecting the fewer days in February.
MJF licence upgrade
As previously announced we are waiting on the Kazakh authorities
to formally approve the move at our MJF structure to a full
production status, which will allow the majority of the oil
produced from this structure to be sold by reference to world
rather than domestic prices - currently approximately double the
domestic price received per barrel.
This approval has been delayed principally as the result of
anticipated changes within the Kazakh Government, which have now
been finalised. Accordingly, we expect the MJF licence upgrade to
become effective without further administrative delay.
Comments:
Clive Carver, Chairman said
"While it is pleasing to report steady rather than dramatic
progress we remain focused on getting our deep wells to flow as
soon as practicable. In the meantime and while we wait for the MJF
licence upgrade the income from our existing production, even at
domestic prices, together with periodic advances from local oil
traders continues to fund our operations."
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser
& Broker
James Joyce
Jessica Cave
James Sinclair-Ford +44 (0) 207 220 1666
Yellow Jersey PR
Tim Thompson
Henry Wilkinson +44 (0) 203 735 8825
Qualified Person
Mr. Nurlybek Ospanov, Caspian Sunrise PLC's Chief Geologist /
Technical Director who is a member of the Society of Petroleum
Engineers ("SPE"), has reviewed and approved the technical
disclosures in this announcement.
This announcement has been posted to:
www.caspiansunrise.com/investors
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
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END
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